The Noble Impulse Indicator (NII) is a technical analysis tool used by traders to identify potential trends in the price movement of financial instruments, such as stocks, currencies, and commodities.
The NII was developed by John Ehlers, a renowned expert in digital signal processing, and was first introduced in his book “Rocket Science for Traders.”
Noble Impulse Indicator Overview
The NII is based on the concept of the impulse response, which is a mathematical function that describes the behavior of a system when it is subjected to a sudden change or impulse.
In the context of financial markets, an impulse can be defined as a sudden increase or decrease in price that reflects a change in market sentiment or underlying fundamentals.
Overall, the Noble Impulse Indicator can be a useful tool for traders seeking to identify potential trends in the market and make informed trading decisions.
Noble Impulse Indicator Explanation
The NII uses a combination of moving averages, digital signal processing techniques, and statistical analysis to calculate the impulse response of the market and identify potential trends.
The indicator consists of two lines: the impulse line and the trigger line. The impulse line represents the impulse response of the market, while the trigger line is a moving average of the impulse line.
The NII calculates the impulse response of the market by applying a digital filter to the price data.
Overall, the Noble Impulse Indicator can be a useful tool for traders seeking to identify potential trends in the market and make informed trading decisions.
Noble Impulse Indicator: Buy Conditions
- Buy when the impulse line crosses above the trigger line
- Confirm with other technical analysis tools
- Consider market conditions and fundamentals
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Noble Impulse Indicator: Sell Conditions
- When the impulse line descends below the trigger line, sell.
- Verify using other technical analysis tools
- To keep an eye on market dynamics and fundamentals
